Covered Calls

Resources

Getting Started

New Plays, Saturday, 11/26/2005

by OI Staff

HAVING TROUBLE PRINTING?

New Plays

Long Plays

Short Plays

None

None

New Long Plays

Editor's note:

We
encourage everyone to read this weekend's market wrap. If you have then feel
free to skip ahead to the play updates. If not we want to caution you about
initiating any new bullish positions. The Dow Jones Industrial Average is up 700
points in just the last four weeks and looks very overdue for some profit
taking. To make matters worse the rally in the DJIA stopped right at major
resistance (see chart) at its five-year trendline. Granted the DJIA is an index
of just 30 stocks but
the S&P 500 and the NASDAQ composite, while both have
broken out to new highs, both also look just as overbought and due for a
correction. Given these conditions we're going to hold off on adding new
positions to the newsletter tonight. More aggressive traders may want to look
over these speculative candidates: Gateway (GTW) looks poised to make a run
towards its 200-dma but watch out for resistance near $3.25. IMS Health (RX) has
recently broken out from its three-month descending
channel and news of the
canceled merger may continue to fuel the rebound.